Re: [Leica] Why are Leicas so much less expensive in Asia??

["ray tai" <razerx@netvigator.com>]

>The economic situation in all
>of Asia has left plenty of unsold stock, especially from Southeast Asia
>and Korea.  So the stock is ending up in Hong Kong where the economy is
>still thriving (HK has the largest cash reserve per capita in the
>world).

Sorry to say, this explanation doesn=B4t hold! The Leica prices are relativel=
y
low all over the Far East. And these items are not old unsold bodies and
lenses. For instance the Aspherical 21/2.8 hasn=B4t been around long enough t=
o
be regarded as part of unsold leftovers!

I think the main reason for these low prices is that Asian importers and
dealers simply are very efficient. They use as few middlemen as possible.
And they don=B4t mind undercutting the prices of their competitors. Just call
them good and honest businessmen!

Before our 25% VAT is added, the Leica M6 price here in Sweden is lower tha=
n
the US price!  And price competition between the shops here in Stockholm is
very hard. Not two shops will ask for the same price! So I get very
suspicious when I read the advertisements in Shutterbug. How come every
advertiser has exactly the same price - US$1995 - for a new M6?? Is there a
Leica price cartel in the US?

Claes

Claes,

Sorry, I suppose the "unsold stock" would not be entirely accurate.  "Unsol=
d
stock" should really include stock that were produced and allocated to
Southeast Asian agents by Solms.  Authorized agents in the area knowing the
products wouldn't sell in batter economies re-allocated those "stock" to
markets with more spending potential, namely Hong Kong and Japan the two
strongest economies in Asia.  (And Leicas are getting to be popular among
the new upperclass in China, BTW)  Look in your Leica warranty card and see
who is the distributor in most of Asia and you will understand the
situation. Importers and middlemen has been responsible somewhat but the
authorized agents knew better than to allow M6's to sell for US$1200 for to=
o
long in Malaysia.  Instead, the supply is slashed in countries where demand
would be very low, but what would they do with all the stock which they are
under contract to sell? Ship them to HK and Japan where they can get at
least US$1500.  They can't directly sell the stock in the US because their
contract would not allow them to.  Neither can the agent indirectly sell to
a third party that would later import them to the US or other territories. 
Though some do make to other shore in small quantities.  Any contract
lawyers out there?

Ray